LG PB-24 Bond valuation: Semiannual interest You are considering buying a bond with a 10-year maturity. The bond's coupon rate is 8%, and the interest is paid semiannually. If you want to earn an effective interest rate of 8.16%, how much should you be willing to pay for the bond? LG 6 PG-25 Bond valuation: Semiannual interest Calculate the value of each of the bonds shown in the following table, all of which pay interest semiannually. 166 Coupon Years to Required stated Bond Par value interest rate maturity annual return A $1,000 10% 12 B 1,000 C 500 22 12 20 12 285 8% 12 14 D 1,000 14 10 10 E 100 4 14 P6-26 Bond valuation: Semiannual interest Three years ago, you purchased a bond with coupon rate of 8% and 9 years left until maturity. The bond pays a coupon semian nually. Today, the market requires a return of 6% for a similar investment to your bond. What is the current value of your bond?